KARACHI, Oct 20: Cotton prices fell further on Thursday on active ginner selling following reports of steady arrival of phutti into ginneries and large unsold stocks lying in the godowns of ginners.
The market decline was led by the Sindh type amid reports of damage to the quality lint owing to heavy rains and floods as some of the deals in the lower Sindh lint were done as lower as Rs4,500 per maund, floor brokers said.
They said even fine type from the upper Sindh, which is being sold at par with their counterpart in the ready section, was sold between Rs5,600 and Rs6,000, lower from the average rate of Rs6,000.
Punjab variety also showed an identical fall but average prices did not breach the barrier of Rs6,000 while some fine lots were traded around Rs6,200 per maund.
Market sources did not rule the possibility of fresh decline in prices in the coming sessions as speculative forces have taken over the cotton trade and may confuse growers to sell phutti in panic.
They said the crop may be on the higher side but may not be sufficient to meet the annual consumption needs of the textile sector and the gap would be bridged through imports.
About 20,000 bales changed hands at the falling prices as spinners and mills continued to build up long positions amid fears of a rebound if growers held back their stocks of phutti.
Official spot rates were revised downward by Rs200 per maund at Rs6,100 for an average quality of lint.
The following were some of the notable deals reported by the Karachi Brokers Forum:
SINDH TYPE: 200 bales, Sultanabad at Rs4,500, 400 bales, Mirpurkhas at Rs5,000 to 5,300, 2,200 bales, Khairpur at Rs5,600 to Rs6,000, 2,000 bales, upper Sindh at Rs5,800 to Rs6,000.
PUNJAB VARIETY: 200 bales, Haroonabad at Rs5,800, 400 bales, Hasilpur at Rs5,900, 200 bales, Fort Abbas at Rs5,950, 1,000 bales, Burewala at Rs5,950 to Rs6,100, 600 bales, Bakhar at Rs6,000 to Rs6,100, 400 bales, each Chichawatni, Gojra and 600 bales, Mongi Bungalow and Alipur and 200 bales, each DG Khan, Pak Pattan, Jatoi, Sheher Sultan and Kaichiwala at Rs6,000, 200 and 400 bales, Shujabad and Mian Channu at Rs6,075, 1,000 bales Layyah, 800 Rahimyar Khan at Rs6,100, 800 bales, Tonsa Sharif at Rs6,100 to Rs6,200, 400 bales, Bahawalpur at Rs6,000 to Rs6,1001, 200 bales, Khanewal at Rs6,100 to Rs6,200, 400 bales, Kabirwala at Rs6,150, 100 bales Rajanpur and 800 bales, Fazalpur at Rs6,200.